Corporate Tax Cuts: What Do They Mean For You?
Just over two months have passed since the Federal Government enacted the Treasury Laws Amendment (Enterprise Tax Plan) Act 2017 to reduce the corporate tax rate in Australia. The new company tax rate is 27.5% for the 2016-17 tax year for companies with aggregated annual [...]
Separating Business And Personal Property, And The Application Of The CGT Roll-Overs
Business owners who undertake arrangements to separate their business and personal assets may be able to avail themselves of CGT roll-overs to disregard or defer the capital gains tax that would otherwise arise. Previously, CGT relief was available if the business owner transferred their business [...]
Sham Loans
Sham Loans The Commissioner of Taxation in two recent tax cases (Millar[1] and Normandy Finance[2]) and Liquidators in BCI Finances[3] (supported by the Commissioner of Taxation), have had success in alleging certain loans were shams. This had the effect that in the tax cases, that [...]
Land banking and primary production exemption from land tax – are they mutually exclusive?
At first thought, ‘land banking’ and primary production exemption from land tax would appear to be mutually exclusive. A landowner’s intention when land banking is to profit from future sale of its land, which is significantly different to the intention of a landowner that uses [...]
If you don’t tell your client to get tax advice, you may be found negligent
Lawyers and advisors who don’t advise their clients to obtain tax advice may be found liable for professional negligence. This is what happened in Ralston v Jurisich [2017] NSWCA 63. In that case, a lawyer’s failure to advise his client on the tax consequences of [...]
Navigating out of the ‘valley of death’ with the aid of ESIC funding
Have you considered investing in an Early Stage Innovation Company (ESIC)? Investing in an ESIC can sound in a reduction in your overall tax bill provided the relevant statutory requirements are met. The tax breaks arising on investments in ESICs, which were introduced last year, [...]
Are You Being Genuine? Small Business Roll-Over Relief For “Genuine” Restructures
Under the Small Business Restructure Roll-over (Div 328-G) , which was introduced to much fanfare last year, small business owners are allowed to change the legal structure of their businesses without incurring a capital gains tax liability to a trust, provided that the economic ownership of the business does not [...]
Australian Tax Residence for Companies Revisited by High Court after 43 years
For the first time in 43 years, Australia’s ultimate appeal court (the High Court of Australia) has decided a case on the issue of “central management and control” of certain foreign incorporated companies: Bywater Investments Limited v FC of T; Hwa Wang Bank Ltd v FC of T [2016] HCA [...]
Australian Diverted Profits Tax ("DPT")
Australia has followed the UK path of pre-empting the implementation of the OECD’s Base Erosion and Profit Shifting (BEPS) final reports dated 5 October 2015 which deals with international tax avoidance alleged against by the likes of Google and Amazon. The UK introduced its Diverted Profits Tax with effect from [...]
Australian Diverted Profits Tax (“DPT”)
Australia has followed the UK path of pre-empting the implementation of the OECD’s Base Erosion and Profit Shifting (BEPS) final reports dated 5 October 2015 which deals with international tax avoidance alleged against by the likes of Google and Amazon. The UK introduced its Diverted Profits Tax with effect from [...]